Weekly Crypto Wrap: 25th July 2024

TLDR

• Learn about crypto with BTC Markets beginners guide.
• US spot ETH ETFs debut with US$1.08b in trading volume.
• BlackRock Bitcoin ETF inflows exceed 'Mag 7' stocks.
• US Bitcoin spot ETFs hit a record US$17b in net inflows.
• Australian employment surges, as unemployment rate ticks up.

BTC Markets announcements

Learn about crypto with BTC Markets beginners guide.

Last week we announced the launch of our new Learn Section, designed specifically for beginners eager to learn about the world of cryptocurrencies.

At BTC Markets, we understand that the crypto space can be daunting, especially for newcomers. That's why we've created a comprehensive educational hub to help you navigate this vibrant landscape with confidence.

What you’ll find in our Learn Section:

• Introduction to cryptocurrencies: Explore the fascinating world of cryptocurrencies and their potential role in the future of finance.
• Getting started in crypto: Learn the basics about crypto wallets, exchanges and creating an account.
• How to buy and sell crypto: Learn how to buy, sell, and store crypto on an exchange, and secure your assets with best practices.
• How to stay safe in crypto: Stay safe in the crypto space by understanding the common scams and how to avoid them.
• Crypto tax requirements: Understanding the regulatory landscape and tax reporting requirements for crypto.

Visit our Learn Section today and start your journey towards becoming a confident and informed crypto enthusiast. With BTC Markets, the future of finance is at your fingertips.

BTC Markets x Ticker News ‘Crypto Corner’ featuring Giant Swan.

In this episode, join BTC Markets CEO, Caroline Bowler as she chats with Giant Swan, to learn about his journey into the world of virtual reality artistry and NFT innovation.

Watch on YouTube or Ticker News.

Exclusive offer codes from our tax software partners.

BTC Markets has teamed up with several tax software providers to help you streamline your crypto tax reporting.

Enjoy exclusive discounts from our tax partners with offer codes here and go to our support page to learn more about our reporting process.

Render Network migration update

The Render Network Foundation is implementing a technical upgrade, transitioning from the Ethereum-based RNDR (ERC-20) token to the Solana-based RENDER (SPL) token.

Please visit our Render blog for further details or the FAQ page on the Render Network.

Mobile app fiat and crypto withdrawals.

Did you know that you can now easily withdraw fiat and cryptocurrency using our latest mobile app update?

This feature allows you to effortlessly manage your withdrawals and track transfer statuses through a comprehensive history list.

The feature is live in the most recent app release. Update your mobile app from the App Store (iOS) or Google Play Store (Android). Discover more about this exciting mobile app update here.

BTC Markets in the news

Bloomberg: Crypto traders bullish as Biden bows out of US presidential race.

By contrast, “what we don’t yet know is Harris’ views on crypto,” said Caroline Bowler, CEO of BTC Markets. “On something like crypto where it could end up being a make-or-break election subject for either of the candidates, we could see some more insights into her views in the coming weeks.”

Read the full article here.

Livewire Markets: From Bitcoin to ballots: crypto's impact on the 2024 US elections.

“Reflecting on my recent trip to the United States, where the buzz around cryptocurrency is palpable, it's clear that digital assets have woven themselves into the fabric of American politics in more ways than one. In this election cycle, winning over crypto holders in crucial swing states has become a strategic imperative. What started as a niche industry has now become a significant political issue.” – Caroline Bowler, CEO of BTC Markets.

Read the full article here.

Capital Brief: Coinbase taps local policy boss as crypto industry braces for regulation.

Our CEO, Caroline Bowler, spoke with Capital Brief about the slow pace of legislation for the blockchain industry in Australia.

“A large chunk of our national economy relies on financial services, and the future is on-chain,” said Bowler. “The people in Australia that know how to do on-chain are not just being kept at arm's length, but actively looking to go overseas.”

Read the full article here.

InvestorDaily: SEC approval of Ethereum ETFs ushers in latest crypto milestone.

Speaking to InvestorDaily, BTC Markets CEO Caroline Bowler welcomed the announcement, noting that it underscores the growing acceptance of digital assets within the regulatory framework.

“The approval of Ethereum ETFs by the SEC signifies a major advancement for the asset class,” Bowler said.

“For Australian crypto investors, it highlights the increasing mainstream acceptance and institutional interest in Ethereum. This development may inspire greater confidence and participation in the crypto market, potentially influencing regulatory perspectives and market dynamics locally.”

Read the full article here.

Australian Blockchain & Cryptocurrency: DECA members engage in crucial dialogues on cryptocurrency regulation with Australian government leaders.

Caroline Bowler, CEO of home-grown cryptocurrency exchange BTC Markets, expressed concerns about the pace at which Australia is advancing on the legislative front compared to the rest of the world.​

“Based on my recent travels to Southeast Asia, Europe, and the US this year, it is evident that financial services worldwide have progressed in the crypto and digital assets space, while we continue to play catch-up locally,” Ms Bowler stated.​

“As a home-grown exchange, we observe that for Australian businesses to develop and seize the opportunities present globally, we must look at offshore markets, thereby taking skills, intellectual property, and investment overseas.”​

Read the full article here.

State of crypto

The weekly trading stats as of Monday, July 22nd at 10:00 am AEST, based on data from Tradingview in USD.

Ethereum ETFs make a splash with US$1.08 billion debut.

The US SEC has approved spot ETFs for Ethereum, which began trading on Tuesday. This marks a significant milestone for Ethereum, following the SEC's earlier approval of Bitcoin ETFs in January. The decision came after a prolonged process and sudden engagement by SEC officials in late May. Ethereum ETFs provide traditional investors with an accessible way to gain exposure to ETH through easily traded vehicles, mirroring the successful launch of Bitcoin ETFs that saw substantial investment inflows and price increases.

Experts like Matt Hougan from Bitwise highlight this as a major milestone, noting that over 70% of the liquid crypto market is now accessible through ETPs. VanEck's Kyle DaCruz emphasised the importance of offering Ethereum exposure in familiar investment formats. Analysts predict that spot ETH ETFs could push Ethereum's price up to US$6,500, with Steno Research estimating potential inflows of US$15 billion to US$20 billion in the first year.

The debut of US-listed spot Ethereum ETFs saw a cumulative trading volume of approximately US$1.08 billion, about 23% of the first-day trading volume of spot Bitcoin ETFs. Leading funds included Grayscale’s Ethereum Trust (ETHE) and BlackRock’s iShares Ethereum Trust (ETHA). Initial fees for these ETFs range from 0.12% to 0.25%, with some offering discounted rates initially.

Trade ETH/AUD on BTC Markets.

Blackrock’s Bitcoin ETF inflows surpass 'Magnificent 7' stocks, despite 12-day streak ending.

In 2024, inflows into BlackRock’s iShares Bitcoin Trust ETF (IBIT) have significantly outpaced those into the ‘Magnificent 7’ stocks, which includes Microsoft, Apple, Tesla, Amazon, Meta, Alphabet, and Nvidia. This surge, totalling nearly US$19 billion year-to-date, is greater than the combined inflows into these leading tech stocks.

On July 23, US-based spot Bitcoin ETFs saw outflows of US$77.92 million, ending a twelve-day streak of inflows. The largest outflows were from Bitwise’s ETF BIBT ($70.3 million), 21Shares’ Bitcoin ETF ARKB (US$52.3 million), and Grayscale ETF GBTC (US$27.3 million). BlackRock’s ETF IBIT was the only fund with inflows, totalling US$71.9 million.

Since January 11, the ten spot Bitcoin funds have accumulated net inflows of US$17.5 billion and have US$59.97 billion in assets under management. The recent inflows were the highest since May, when total net inflows exceeded US$4 billion.

Trade BTC/AUD on BTC Markets.

Source: TheBlock.co

Mt. Gox creditors begin receiving Bitcoin after US$3 billion transfer.

Creditors of the defunct crypto exchange Mt. Gox have started receiving Bitcoin and Bitcoin Cash this week. This follows reports that 48,641 BTC, valued at over US$3 billion, had been received from the Mt. Gox Rehabilitation Trustee last week. The distribution was confirmed by both a source cited by The Block and discussions in a Telegram group for Mt. Gox creditors.

The rehabilitation plan allows creditors to reclaim their funds, with exchanges estimating the process to take one to two weeks. Previously, Mt. Gox had transferred 42,587.49 BTC, approximately worth US$2.8 billion, to new addresses, as noted by the crypto tracking firm Arkham. This ongoing disbursement marks a significant step in resolving the long-standing bankruptcy case, providing some restitution to those affected by the exchange's collapse.

Crypto Fear& Greed Index

Source: alternative.me

The week ahead: economic events

July 25th: Germany Ifo Business Climate Index. United States Durable Goods Orders and GDP Growth Rate.

July 26th: United States Core PCE Price Index MoM, Personal Income and Personal Spending.

July 30th: France GDP Growth Rate and GDP Annual Growth Rate. Germany GDP Growth Rate and GDP Annual Growth Rate. Italy GDP Growth Rate and GDP Annual Growth Rate. Euro Area GDP Growth Rate and GDP Annual Growth Rate. Germany Inflation Rate.

July 31st: United States Job Openings. Australia Monthly CPI Indicator. China NBS Manufacturing PMI. Japan Interest Rate and Consumer Confidence. France Inflation Rate. Euro Area Inflation Rate. Italy Inflation Rate.

August 1st: United States Fed Funds Interest Rate and Fed Funds Interest Rate. Australia Balance of Trade. China Caixin Manufacturing PMI.

Source: trading economics

Market reflections

Overview

Australian employment surged despite a slight rise in the unemployment rate, with mixed signals from manufacturing and services. Japan's annual inflation held in June, showing varied trends across sectors. The ECB maintained interest rates amid a stable inflation outlook. German consumer confidence reached its highest since April 2022, though manufacturing hit a three-month low. In the UK, the unemployment rate remained steady amid mixed job market trends, while retail sales fell in June due to election uncertainty and poor weather. The Bank of Canada cut its interest rate to 4.5%, citing slowing inflation and economic moderation.

Australia:

• Australian employment surges in June.
• Slight uptick in unemployment rate.
• Manufacturing & services sectors show mixed signals.

Australian employment surges in June, despite slight uptick in unemployment rate.

Australia's labour market saw a significant rise in employment by 50,200 jobs in June, surpassing forecasts of 20,000. Full-time positions increased by 43,300, while part-time roles grew by 6,800. Over the past year, employment rose by 2.8 percent, adding 387,600 jobs.

The labour force participation rate also edged up to 66.90%. However, the unemployment rate crept up by 0.1 percent. Despite this slight increase, the overall job market shows strong growth and economic recovery, driven primarily by full-time employment.

Manufacturing and services sectors show mixed signals in July.

The Judo Bank Australia Manufacturing PMI rose slightly in July, indicating continued sector decline with worsening business conditions and significant job cuts, as export orders hit a four-year low. Meanwhile, the Services PMI fell, marking the weakest expansion in six months, driven by a decline in new orders and rising input costs due to minimum wage increases.

The Composite Output Index also slowed, reflecting weaker services activity and a sharper drop in manufacturing production. Business confidence remains low, highlighting ongoing economic challenges.

Global

• Japan's annual inflation rate holds in June, with mixed sectoral trends
• ECB holds interest rates steady in July, amid stable inflation outlook.
• German consumer confidence hits highs, as manufacturing PMI stumbles.
• UK unemployment rate steady as retail sales fall in June, amid election uncertainty.
• Bank of Canada cuts interest rate amid slowing inflation & economic moderation.

Japan

Japan's annual inflation rate holds at 2.8% in June with mixed sectoral trends.

In June, Japan's annual inflation rate remained steady at 2.8%, the highest since February. Electricity prices stayed high, while gas prices increased for the first time in 13 months, following the end of energy subsidies. Food prices rose, and other sectors such as transport, furniture, and healthcare saw price increases. Core inflation edged up to 2.6% from 2.5% in May. The monthly CPI rose by 0.3%, decelerating from May's 0.5%. Education prices continued to decline, marking the third consecutive monthly drop.

European Union

ECB holds interest rates steady in July, amid stable inflation outlook.

The European Central Bank (ECB) maintained its key deposit facility rate at 3.75% in July, consistent with market expectations and following a 25bps rate cut in June. The main refinancing operations rate remained at 4.25%, and the marginal lending rate at 4.5%.

The ECB's decision reflects stable inflation indicators, despite high domestic price pressures and services inflation. The Council remains committed to returning inflation to 2% and will continue with restrictive policy rates as needed. Future rate decisions will be data-driven, considering economic conditions, underlying inflation trends, and the effectiveness of monetary policy.

Germany

German consumer confidence hits highest level since April 2022.

The GfK Consumer Climate Indicator for Germany has experienced a notable improvement, rising in August. This figure surpasses market expectations, and the highest level observed since April 2022.

The improvement in consumer climate is driven primarily by a significant boost in income expectations. Both economic expectations and the propensity to buy also saw increases, with economic expectations rising, and the propensity to buy improving. However, the tendency to save remained relatively stable and did not contribute to the upturn in consumer sentiment.

Rolf Bürkl, a consumer expert at NIM, suggested that the enthusiasm surrounding the European Championship might have played a role in this improvement. However, Bürkl cautioned that it remains uncertain whether this boost in consumer sentiment will be sustained or if it is merely a temporary effect.

Manufacturing hits three-month low in Germany, rebound unlikely before fall 2024.

The HCOB Flash Germany Manufacturing PMI fell unexpectedly in July, marking the lowest level in three months. This decline from June's reading fell short of market forecasts, indicating a deteriorating performance in Germany’s manufacturing sector, with production experiencing a sharper decline and output levels decreasing at the fastest pace in nine months. Additionally, new orders contracted the most in three months, backlogs of work continued to diminish, and employment saw its steepest drop since March.

On the price front, both input costs and output prices continued to decrease, albeit at a slower pace. Manufacturing growth expectations also moderated to a four-month low. Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, noted, "The hope that this sector could benefit from a better global economic climate is vanishing into thin air. The weakness in the manufacturing sector appears to be persistent, with a potential rebound not expected until at least the fall of this year."

United Kingdom

UK unemployment rate steady as job market sees mixed trends

The United Kingdom's unemployment rate held at 4.4% from March to May, matching market expectations and marking the highest rate since September 2021. The number of unemployed individuals increased, with a notable rise among those unemployed for up to 6 months. The employed population grew, driven by part-time employees and full-time self-employed workers. Additionally, 3.8% of employed individuals held second jobs as the economic inactivity rate decreased. Overall, the job market showed a mix of stability and growth amid rising unemployment.

Retail sales in the UK fall in June, amid election uncertainty and poor weather.

UK retail sales fell in June, following a rise in May, and performed worse than anticipated. Key factors included election uncertainty, poor weather, and reduced footfall, impacting non-food stores, food stores, and online sales. The three-month trend showed a contraction, with year-on-year sales slightly down. This decline signals potential economic challenges ahead.

Canada

Bank of Canada cuts interest rate to 4.5% amid slowing inflation and economic moderation.

The Bank of Canada reduced its key interest rate by 25 basis points to 4.5% during its July meeting, following a similar cut in June. This move was anticipated by some market participants and came after the central bank held the terminal rate of 5% for ten months.

The Governing Council attributed this decision to the excess supply in the Canadian economy, which has helped to temper inflation in recent months. Additionally, signs of moderation in the labour market have supported the case for a more accommodative monetary policy.

The central bank highlighted that lower interest rates could help reduce mortgage and shelter costs, the largest drivers of inflation. The council expects CPI inflation to decrease in the latter half of the year, influenced by base effects for gasoline prices, and to stabilise at 2% by 2025.

Scam awareness

Safeguarding against cyber scams.

In today's digital world, spotting a cyber scam is more important than ever. Scams are a common way for cybercriminals to hack into accounts, putting individuals, businesses, and institutions at risk. Staying alert to scam messages is key to protecting yourself online.

Scammers use all sorts of communication methods, email, text messages, phone calls, and social media, to trick people. Their main aim is to get you to hand over money or personal information. They often pretend to be someone you trust, using that familiarity to create a false sense of security.

Read the full blog here.

The ASIC provides a checklist of common scams and ways to avoid them. To learn more, visit ASIC’s website.

Discover more on our ‘Compliance conversation’ blog page, where we share the latest updates on safeguarding against scams and protecting your assets. Stay informed and stay protected!

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Disclaimer: The information provided on this page is issued by BTC Markets Pty Ltd (BTC Markets, we, us, our). The information is general only and is not intended to constitute an opinion or recommendation with respect to its contents. Past performance is not a reliable indicator of future performance. Any reference to past performance is intended to be for general illustrative purposes only. The information cannot be relied upon for any purposes and is not intended to be a substitute for professional advice.

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Weekly prices are accurate as of 10:00 AM AEST on 22/07/2024.